EU Insight 25 October 2024

Brussels, 25 October 2024

CLARIFICATION ON EU DEFORESTATION REGULATION STATE OF PLAY

This week, the European Parliament plenary endorsed the use of the urgency procedure to treat the proposed delay to the EU Deforestation Regulation. Contrary to the Council, and unlike what we reported last week, the Parliament has not yet approved the delay but aims to expedite the process, to ensure the delay is endorsed by the end of the year. The parliament will now be able to directly table the Commission’s proposal to a plenary vote, thus skipping a committee vote and fast-tracking the whole process. The text should be voted on in the upcoming plenary session on 13 and 14 November. If the Parliament adopts a position identical to the Council’s (i.e., with no changes to the Commission’s proposal), the delay of the Regulation could be officially confirmed in the weeks following the vote by Council.

COMMISSIONERS-DESIGNATE ADDRESS PARLIAMENT QUESTIONS AHEAD OF HEARINGS

The Commissioners-designate provided their written answers to the European Parliament’s questions, representing the final formal step, ahead of the upcoming confirmation hearings. The hearings which will occur from 4 to 12 November, will allow the Commissioners-designate to outline their priorities, elaborating on their written answers, as well as provide Members of the European Parliament with the opportunity to test the nominees’ competencies, and potentially reject one Commissioner candidate or two. Following the hearings, the European Parliament will vote on the new Commission, which may take up office on the first day of the month, following a successful vote. This is currently scheduled for 1 December, though it may be pushed back a month, if any complications emerge during the hearing process.

MOLDOVA ENSHRINES COMMITMENT TO THE EU IN CONSTITUTION

Last weekend, Moldova held a referendum on whether to enshrine the objective of EU membership into the country’s constitution. The pro-EU camp emerged victorious, with a razor-thin margin of 50.4% voting in favour of the constitutional amendments, with 49.6% of votes against. Amongst accusations of Russian interference in the electoral process, the EU as well as the incumbent pro-Western president Maia Sandu, welcomed the referendum’s outcome viewing it as a historic decision that reflects Moldova’s aspirations to join the EU by 2030. Alongside the referendum, Moldova also held its first round of general elections, out of which Sandu emerged as a leader but fell short of securing an outright majority. Sandu will face off pro-Russian candidate Alexandr Stoianoglo in the second round of the elections, on 3 November.

COMMISSION LAUNCHES NETWORK TO FOSTER PRIVATE INVESTMENTS IN INNOVATION

The Commission launched its Trusted Investors Network, aiming to crowd in investments in innovative deep-tech companies within the European Union. The network which counts 71 investors, including venture capital funds, public investment banks, and philanthropic foundations representing over €90 billion of assets, will allow its members to co-invest alongside the European Innovation Council (EIC) Fund. The Fund, created in 2021, has since invested close to 1€ billion in more than two hundred start-ups aiming to bolster innovation in the EU. Through the newly established network, the Commission hopes to encourage private capital to participate in the Fund’s objective, which has been identified as a strategic necessity for the EU to compete globally.

COMMISSION INVESTS €4.8 BILLION IN NET-ZERO PROJECTS ACROSS THE EU 

The Commission has allocated €4.8 billion in grants to 85 net-zero projects under the Innovation Fund, relying on revenue proceeding from the EU’s Emission Trading System. Spanning across 18 EU countries, the selected projects aim to boost cleantech manufacturing, renewable energy production, carbon management, and green mobility. According to the Commission, the supported initiatives could lead to the reduction of 476 million tonnes of CO2 emissions over ten years and are thus aligned with the Fund’s broader objective of fostering the EU’s decarbonisation. In addition to the successful projects, all 149 applicants were awarded a quality label, the so-called STEP Seal, which aims to fast-track their application for further public and private funding opportunities. A new call for proposals to receive Innovation Fund support is set for December 2024.

COMING UP NEXT WEEK

• 30 October: College of Commissioners. On the agenda: Enlargement Package 2024 and Niinistö report.

The EU Insight will be back on 8 November.

Tuomas Tierala, Managing Partner Brussels, Kreab

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Kreab • Tel: +32 2 737 6900 • tuomas.tierala@kreab.com • www.kreab.com/brussels • X: @KreabEU  •  LinkedIn: Kreab Worldwide